Summary Literature Seminar week 6

Question 1

Transition towards service offerings meaning more focus on value in use rather than value in exchange. How can these impact service operations (activities within service development, service delivery etc.)

Answer 1

Value in exchange: how much a product/service have and what it cost the customer to purchase it

Value in use: What the value of it gives. What can we do with the product that adds value

Customer is the ultimate judge of value (Johnston et.al). For example, deliver service to a car after purchase if the car breaks down. How we use and maintain the car has en impact on how we value it. And how well the staff co-operate with the firm of consultants may well affect their ability to do their job. Customer role in service delivery is referred to as co-production. All customers are different so it is good to understans how each customer creat value through value in use.

Question 2

Megatrends Owen et.al (2017). service firms move from a “product” logic to a service dominant logic - discuss megatrends in relation to a bank and how they influence their service offerings.

Answer 2

Service centered logic. customer creator of value. A megatrend is a long-term change that affect everything permanently. It drives other trends as well like sales, growth and innovation.

5 Social megatrends:

• Value change: The increasing importance of transparency, diversity individualisation and freedom of choice,
• Green and resource scarcity: Increasing consciousness of manufacturers when providing products and services to people and at same time take care of natural system.
• Health and ageing: increasing importance of healthy living and lifestyle.
• Globalisation and the need for community:
• Inequality and social exclusion: Increasing market share of poor customer increase. Products and services need not be of inferior quality but most be provided cheaply

The effects on the bankis that: For example that they provide “green” mortgage loans or green funds/securities. Health and ageing, becoming more digitalised with banking services might be hard for the older that can’t keep up with the change. Equip workforce that become older with right skills and to treat customers right.

Question 3

Megatrend that should have been included

Answer 3

Digitalisation should have been included since this offers both access to a lot of online service, for instance bank. Self-service etc.

Question 4

Belvedere (2014) points to three influencing factors to service operations. dominant culture, industry specific regulations and facilities endowment.
What impact to these factor have(and why) on the categories of service process.(professional service and mass service)

Answer 4

Dominant culture in medicine is for example that the medical procedure can be seen as a fixed service - you know what you get.
Facility endowment. Money invested in the building and technical equipment
Industry-specific regulations: iso standards etc. In healthcare there are strict regulations concerning equipment

In professional service, too high variation/variability in example consultancy how the factors impact it.
Facility endowment, low investment in mass services. for example restaurant.